FY Q2 EPS of $0.68 matches year ago, but bit below consensus on more shares and late '00 shipment delays. co. says sales and earnings were ahead of its projections until mid-Dec. With slowing domestic industrial order trends and ongoing weak forex, we expect softer EPS growth for 2nd half FY 01 (June). and PH plans further realignment charges. See rebound continuing in aerospace, int'l industrial segments. But cutting our FY 01 est. by $0.25 to $3.40, FY 02 by $0.20 to $3.90. Stock now well off Oct. lows, view as fairly valued.

FY Q4 EPS $1.01 in line with expectations, vs. $1.34 before $0.32 special charge. Attributes decline to negative impact of rising raw material costs and weakness in euro. Continues inability to increase selling prices fast enough to offset higher material costs. Sales rose only 1.1% as contribution from one extra week in period was offset by adverse currency rates. Full FY 00 (Nov.) EPS of $3.47, vs. $4.06 before special items. FULL notes that demand in December was lower than in '99. Cutting our EPS est. for FY 01 to $3.50 from $4.00.